Thank you for your question.
Yes, you may deduct your legal expenses related to a dispute with your disability insurer. This is because the CRA allows you to deduct legal expenses to collect salary and wages; this also includes disability payments to compensate someone for lost salary or wages.
For more information, please see the links below.
Are All Legal Fees Fully Tax Deductible?
Deducting Legal Fees
If you have any questions, please contact us.